Toll road project completion: WSKT will receive funds
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Penyelesaian proyek tol: WSKT bakal dapat dana
23 August 2023
By: Dionisio Damara & Artha Adventy
Jakarta - The State-owned Enterprises (SOE) Ministry ensures that PT Waskita Karya Tbk (WSKT) will receive funds through PT Hutama Karya (HK). The amount is larger than the last state equity participation (PMN) that reaches Rp3 trillion.
The reason why Waskita is receiving the funds is because they are completing three toll road projects that require a large cost.
“We are allocating more [than Rp3 trillion] through Hutama Karya as we have calculated that it is not enough to complete the three toll road projects, namely Kapal Betung, Bocimi, and Becakayu,” SOE Deputy Minister Kartika Wirjoatmodjo said on Tuesday (22/8).
The amount of support to complete the toll roads is currently being discussed by the PUPR Ministry. The SOE is also welcoming investors who want to invest to complete the toll road projects.
The PMN distribution to Waskita through HK is the government’s effort to recover the state-owned issuer that is currently in debt. The support that will be allocated to HK for Waskita will be used to complete the toll road projects.
“Some [of the profit] will be used to pay for some of Waskita’s receivables,” Tiko explained.
Tiko stated that his agency was currently in discussion with bondholders to facilitate restructuring and avoid postponement of debt settlement obligation (PKPU).
“We are avoiding a PKPU. A PKPU is [an option] and we are discussing it. We are looking for a win-win solution,” he stated.
Regarding bank loans, Tiko claims that almost all of the banks have agreed.
He also mentioned that the restructuring effort was set to be completed in August, or September at the latest.
Meanwhile, another state-owned construction issuer, PT Wijaya Karya (Persero) Tbk (WIKA), will not receive PMN in 2024.
WIKA Corporate Secretary Mahendra Vijaya said that the company would optimise several potentials, including government projects that will be tendered in 2024.
According to him, government projects that are funded by the APBN with monthly progress payments and a down payment are projects that are in line with WIKA’s current target.
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